Dealmaking in 2025: Insights from Deloitte's M&A Trends Survey

As the financial landscape continues to evolve, merger and acquisition (M&A) activity appears to be on the rise for 2025. Deloitte's latest survey, capturing views from corporate and private equity (PE) leaders, indicates a wave of optimism in the market. With nearly three-quarters of executives expecting an increase in the average deal size this year, it is clear that the business community is preparing for significant movements in the M&A sector.

Executive Optimism

Conducted in early February 2025, the survey focused on assessing expectations for M&A activity and experiences encountered in recent transactions. A substantial 79% of corporate leaders and an impressive 87% of PE executives expressed expectations for a rise in deal volume over the coming year. Notably, the financial services and PE sectors displayed the most optimism, with 87% of participants from each sector anticipating a greater number of deals in 2025, and a staggering 82% expecting an increase in deal size.

Adam Reilly, national managing partner for mergers, acquisitions, and restructuring services at Deloitte, commented on the cautiously optimistic outlook, noting factors such as potential Federal Reserve interest rate cuts and favorable tax proposals, which may serve as strong incentives for dealmakers. Despite these positive signs, Reilly cautioned that risks remain, urging executives to maintain agility and discipline in their approach to navigate the changing environment.

Strategic Shifts in Deal Targeting

The survey highlighted a significant trend towards agility and flexibility in dealmaking strategies. A notable 88% of corporate respondents and 81% of PE respondents reported making substantial shifts in their deal targeting strategies over the past two years. This often meant narrowing focus to specific sectors rather than pursuing multiple directions simultaneously.

In addition to strategic shifts, a majority of both corporate (84%) and PE (91%) organizations reported ongoing internal restructuring efforts, allowing them to better position themselves for upcoming deals. Furthermore, diverse lending scenarios have become crucial as companies encounter various economic and regulatory challenges, with a continued preference for non-traditional lenders noted among 54% of corporates and 52% of PE firms.

Embracing Digital Transformation

Digital transformation continues to play a vital role in M&A strategies, as nearly all survey respondents (97%) have begun incorporating advanced technologies such as Generative AI and data analytics into their transactions. The emphasis on digitization has notably increased in several areas involving target identification and integration processes compared to the previous year, indicating a strong move towards modernizing deal frameworks.

Global Horizons

Furthermore, 85% of respondents signaled an anticipated increase in interest towards acquiring foreign companies within the next year. The primary motivations cited were market expansion (47%) and gaining access to cutting-edge technologies (47%), illustrating a global outlook amidst domestic strategies.

Conclusion

In conclusion, the findings of Deloitte's 2025 M&A Trends Survey encapsulate a spirit of optimism among dealmakers, spurred by strategic pivots and innovative technologies. As corporate and PE leaders prepare for an active year ahead, maintaining focused strategies and embracing digital transformation will be key components for success in navigating the evolving M&A landscape.